THE Welsh Assembly Government will claim today it is half way towards its target of creating 6,500 affordable homes to help tackle the property crisis.

The announcement comes on the second anniversary of the ’One Wales’ coalition deal between Labour and Plaid Cymru.

But opposition critics claimed the figure neglects the loss of 1,147 social homes to sales or demolition.

Fears were raised that accelerated spending on homes to mitigate the impact of the recession has left little cash left to promote future developments.

Deputy housing minister Jocelyn Davies said early figures suggest the number of homes, delivered by housing associations over the last two years, is 3,252.

Ms Davies said: “I am delighted to announce that we are on track to meet our target of creating 6,500 additional affordable homes in this Assembly term.

“This is a particularly impressive achievement given the current economic conditions.

“It is also a great achievement by Housing Associations who have committed their own resources at a time when borrowing is more expensive and difficult to obtain.”

In December 2008, WAG announced £42m extra over three years to boost affordable housing and give a vital stimulus to the construction industry.

Nick Bennett, chief executive of Community Housing Cymru said associations produced more thanŠ1,300 units with no grant.

“However, we warned that the target would not be reached without increased public investment, and have been delighted to see the Assembly Government increase investment and also review regulatory arrangements so that we can all focus on more outcomes at a time of great need.”

Pilot schemes to provide energy efficiency grants to first time buyers are to be extended to include all housing renewal areas in Wales for 2009-2010.

Carl Bateman and Emma Williams in Wrexham received a grant to repair their central heating and to install a new window. Mr Bateman said: “We wouldn’t have any heating if it wasn’t for the help we received.”

The social housing grant budget was increased to £107.4m to support housing associations to provide new affordable housing for rent or low cost home ownership.

North Wales Tory AM Mark Isherwood feared that only £6m remained in the pot for next year with no decision over funding post 2011.

“The scale of the housing crisis is such, we need a national housing recovery plan rather than short term targets which never had any chance of addressing the scale of the problem.”

Lib Dem housing spokesman Peter Black said that 1,147 affordable homes had been lost in Wales through sales and demolitions.

“This means that 1,147 affordable housing units have to be deducted from the minister’s 3,252 figure, so that the supply of affordable housing has only increased by 2,105 units.”

Community Housing Cymru organised a conference at the Assembly tomorrow over ensuring the continuity of private funds into social housing in Wales.

Public investment has increased by approximately 60% this year .

“The international financial crisis has led to an increase in the cost of borrowing private capital despite massive interest rate cuts,” it said.